US ARMY NAF EMPLOYEE DOD HEALTH BENEFIT PLAN

US ARMY NAF EMPLOYEE DOD HEALTH BENEFIT PLAN JULY 2014

INTRODUCTION This booklet is published by the U.S. Army NAF Employee Benefit Office. It is intended to provide you with useful information about the Health Benefit Plans available to U.S. Army NAF Employees and eligible Retirees, including the Department of Defense Joint Uniform NAF Employee Health Benefit Plan and Health Maintenance Organizations (HMOs), which are available in some areas. The information in this booklet is accurate as of the publication date. However, because the Health Benefit Plans are governed by DoD 1400.25-M and the Summary Plan Descriptions (SPDs) of the DoD Health Benefit Plan (DoD HBP) and the individual HMOs, should the information in this booklet conflict with the provisions of those documents, those documents are the final authority. The full text of the SPD of the DoD HBP can be found at www.nafhealthplans.com. The HMO SPDs are available on the HMO website or available at some of the servicing NAF Human Resources Offices. The information in this booklet applies primarily to the DoD HBP. Although this information is generally applicable to the HMOs, there may be some variation in the provisions of the HMO Plans. Those Plans should be reviewed individually. Should you have any questions concerning the Health Benefit Plans, please contact your servicing NAF Human Resources Office or forward your questions to this office at usarmy.jbsa.imcom-hq.mbx.naf-benefits-officemedical-team@mail.mil. 2

TABLE OF CONTENTS What is the DoD Health Benefit Plan (DoD HPB) 4 Joining the Health Benefit Plan 4 Participation Begins 5 Participation Ends 6 Cost of the Health Benefit Plan 6 Who May Be Covered Under the DoD HBP 7 Health Benefit Plan Coverage 7 Enrollment Options 8 Stand Alone Dental Plan 8 Three Tier Aetna Pharmacy Plan 8 DOD HBP Benefits 9 How to Use the Aetna Health Benefit Plan 9 Finding an Aetna Health Care Provider 9 Obtaining Health Care While Traveling 11 Mail Order Prescription Drug Service 11 Filing Claims for Services 12 Aetna Member Services 13 Aetna Navigator 13 Health Insurance Portability and Accountability Act (HIPAA) 14 Special Enrollment Provisions 14 USERRA 15 Temporary Continuation of Coverage (TCC) 15 Conversion of Coverage 16 Post Retirement Medical (PRM) Benefit 16 Effects of Medicare 17 Medicare Part D 18 Coordination of Benefits 18 Survivor Benefits 18 A Word About Privacy 19 Where to Get Information and Assistance 19 3

WHAT IS THE DOD HEALTH BENEFIT PLAN The Department of Defense Health Benefit Plan (DOD HBP) was mandated by Congress in the Appropriations Act of 1995, which required that the Services develop a uniform health benefit Plan for the Nonappropriated Fund (NAF) employees. The participants in the DOD HBP include the Army, Air Force, Navy (CNIC), United States Marine Corps (Marines), The Exchange (formerly AAFES), and the Navy Exchange (NEXCOM). The services jointly manage the Plan and determine the benefits available under the Plan. This is a selfinsured medical and dental insurance Plan. Claims and administrative costs of the Plan are funded by premiums, which are paid by employees and their employers. The Plan is administered by Aetna US healthcare, the Third Party Administrator (TPA) of the Plan, which processes claims for services as authorized under the Plan provisions and provides access by Plan participants to networks of health care facilities and physicians, which have agreed to accept the insurance at negotiated rates. The Health Maintenance Organizations (HMOs) are fully-insured plans. HMOs process and administer claims within their respective areas according to written agreements. Who May Participate JOINING THE HEALTH BENEFIT PLAN You may elect to participate in the Health Benefit Plan if you are in an eligible class. You are eligible if you are: A regular full time or regular part time NAF employee working at least 20 hours a week Effective 2015, employees in a flexible employment category (FLEX) that work an average of 30 hours per week or more over a one year period will be eligible for medical care only in CY15. Eligibility will be determined by looking at the FLEX employees hours of work during a designated look back period of one year and will be reassessed annually. AND Working in one of the 50 United States, the District of Columbia, or Puerto Rico. HOWEVER If you are working overseas, you must be a U.S. citizen or the spouse or child of a U.S. citizen. 4

Retired NAF employees who meet eligibility requirements for the Post Retirement Medical Benefit may also be enrolled in the Health Benefit Plan. Please see the Post Retirement Medical (PRM) Section. Survivors of deceased active and retired employees who meet eligibility requirements may also be enrolled in the Health Benefit Plan. (See the section on Coverage for Surviving Dependents). Same-sex domestic partners and spouses of eligible NAF employees and retirees who meet eligibility requirements may also be enrolled in the Health Benefit Plan. When to Join Eligible employees as specified in the SPD and AR 215-3 may join the Plan within 31 days of their hire date. Eligible employees who do not join during their first 31 days of hire may enroll during the Open Enrollment Period (normally held in November of each year). Eligible employees may enroll in the Health Benefit Plan outside of Open Enrollment Period only if they experience certain life events, which would entitle them to enrollment under HIPAA (Health Insurance Portability and Accountability Act of 1996) or in certain other circumstances. You only have 31 days from the HIPAA event to enroll. See the sections on HIPAA and Special Enrollment provisions. How to Join the Health Benefit Plan You must complete and sign DA Form 3473, US Army NAF Employee Benefit Election Form, to join the Health Benefit Plan. This form is available from your servicing NAF Human Resources Office. PARTICIPATION BEGINS If you are a new employee or you are enrolling outside of Open Enrollment Period due to a life event, your coverage is effective on the date you sign the enrollment form. There is no pre-existing condition exclusion in the DOD HBP so there is no waiting period before you may obtain health care services under the Plan once you are enrolled. 5

If you enroll in the DOD HBP during an Open Enrollment Period, your coverage is effective on January 1 st following the Open Enrollment Period. Please see the section on Special Enrollment Provisions. PARTICIPATION ENDS Your coverage ends at midnight on the date of your termination from employment or the date you terminated your coverage, unless you have elected to continue your coverage after termination of employment under the TCC (Temporary Continuation of Coverage) program. (See the section on TCC). If you are a FLEX employee, coverage ends after one year if you no longer work on average 30 hours of more per week. Employees who accept an appropriated fund position under portability of benefits may continue their coverage without charge for up to 31 days, pending enrollment in the Federal Employee Health Benefit Plan. COST OF THE HEALTH BENEFIT PLAN Premiums for your health insurance are deducted from your pay each pay period. Due to steadily increasing health care costs, rates are adjusted each year. The current premium rates for the DOD HBP and the HMOs are available on the NAF Benefits Website, www.nafbenefits.com. The Army, specifically, the NAF Instrumentalities (NAFI), contribute a substantial share of your bi-weekly premiums. Employees pay 30% of the premium, and their NAFI pays 70%. Your premiums are deducted automatically from your salary on a pre-tax basis under Section 125 of the Internal Revenue Code. This means your premium deduction is taken before Federal and State Incomes Taxes, Social Security and Medicare are withheld. This effectively lowers your health care premium costs by your applicable tax rate, normally 25% to 35% thus making health and dental care for your family more affordable. Because this effectively lowers your Social Security wage, upon which your Social Security benefit is based, some lower paid employees who are approaching retirement may want to opt out of the section 125 Pre-Tax Program. Should you decide to opt out of the Section 125 Pre-Tax Program, please see your servicing HRO. You may only do this during an Open Enrollment Period. Normally, benefits payments deductions begin after 2 pay periods. If you don t see any deductions on your LES, please contact your HRO immediately. 6

Note: New Jersey and Puerto Rico do not allow pre-tax premiums for their state and local tax withholding. WHO MAY BE COVERED UNDERTHE DOD HPB Eligible employees Their legal and common law spouses, where common law spouses are recognized by their state. Their same-sex domestic partner. Their biological, adopted or step children who live with them and are dependent upon them for support. Any other child who is their biological, adopted or step child, but who lives with them and is dependent upon them for financial support. Evidence of dependency is required. Dependent children until age 26 Certain dependent children with disabilities may continue to be covered regardless of age. Please refer to the Summary Plan Description (SPD). Medical Plan HEALTH BENEFIT PLAN COVERAGE The DOD HBP consists of the Preferred Provider Organization (PPO), also known as the Open Choice (OC) Plan, the Traditional Choice or Indemnity Plan (TC) and HMO Plans. A PPO or Indemnity Plan will be offered in all areas where eligible active and retired employees are located. The PPO Plan will be offered where feasible. The Indemnity Plan will be offered in areas where the PPO Plan is not offered. Employees and retirees in overseas locations will be in the Indemnity Plan because there are no PPO networks outside the United States and Puerto Rico. Retirees in the overseas locations are not eligible for Medicare. Where HMOs are available - employees may choose between the DOD HBP and an HMO. (Note: Retirees may not participate in HMOs.) The following HMOs are available: Hawaii Medical Services Association (Hawaii) Kaiser Permanente Mid-Atlantic Health Plan (National Capitol Region) Kaiser Permanente Hawaii (Hawaii) Capital Blue Cross (Ft. Indiantown Gap and Carlisle Barracks, PA) Scott & White Health Plan (Fort Hood, TX) Triple S (Puerto Rico) 7

DOD HBP Dental Plan A comprehensive dental plan is also available on an optional basis to all active employees who are participating in the DOD HBP or an HMO if the HMO in which they are enrolled does not offer a dental plan. Retirees may also enroll in the dental plan if they meet the eligibility requirements for the PRM and Dental benefit. ENROLLMENT OPTIONS Eligible employees and retirees may enroll in the following coverages: Single Medical coverage without Dental Single Medical coverage with Dental Family Medical coverage without Dental Family Medical coverage with Dental Note: Eligible FLEX employees may only enroll in medical. STAND ALONE DENTAL PLAN For those active employees not requiring medical insurance but may need dental coverage, may enroll in the Stand Alone Dental Plan. Please note the Stand Alone Dental Plan cannot be combined with enrollment in a medical plan under the DoD NAF Health Benefits Program. Also, the Stand Alone Dental Plan does not have a PRM benefit. THREE TIER AETNA PHARMACY PLAN Tier One Generic Drugs: You pay the least for generic drugs- $10 co-pay for prescription when using a participating retail pharmacy and $20.00 for mail-order. Tier Two Preferred Brand-Name Drugs: You pay higher co-pays per prescription, $20.00 when using a participating retail pharmacy and $40.00 for mail-order. Tier Three Non-preferred Brand-Name Drugs: You pay the most for these types of drugs- up to a maximum of $100 per prescription at retail pharmacies and $200 per prescription using the mail-order service. 8

DOD HBP BENEFITS Benefits and levels of coverage for Medical and Dental may change each Plan Year (calendar year) based on a number of factors, such as utilization, health care costs, developments in health care, network and pharmaceutical agreements, and other factors. For the most current Plan Benefits, please consult the SPD or the Plan Summary, both of which are available on www.nafhealthplans.com. HOW TO USE THE AETNA HEALTH CARE PLAN Approximately two to three weeks after you have enrolled in the Health Benefit Plan, you will receive your member Identification Card. Your card will include your name and member number, the Plan in which you are participating, and the co-pays associated with your Plan. You should present this card when receiving health care services. You will be expected to pay your health care provider any co-pays required at the time the service is provided or when you are filling prescriptions. If you are in the Open Choice Plan, you should use only network providers to receive the maximum benefit from the Plan. If you obtain health care services outside of the network, your benefit will be reduced substantially. If you are in the Traditional Choice Plan, you may seek health care from any qualified health care provider and are subject to any co-insurance or co-pays. HMO services are cost specific to the HMO. Employees should check with their HMO to determine any costs associated with a service. Open Choice Plan FINDING AN AETNA HEALTH CARE PROVIDER If you are in the Open Choice Plan, you should use only network providers to obtain the maximum benefit under the Plan. To locate a network provider or health care facility, use the Aetna Docfind link located at www.nafhealthplans.com. Once in Aetna DocFind, you will be asked to enter your preference for the type of provider you desire and the distance you are willing to travel to obtain care. Normally, you will not have to drive more than five or ten miles from your residence to obtain care. When you visit a provider for the first time, present your Member ID Card and ascertain that the provider is an Aetna network provider under your Plan. Providers join and opt out of the networks on a daily basis so you should be certain the provider remains in the network so you do not inadvertently obtain care out of network and thus increase your liability to pay additional fees for your health care. An added word of caution, your primary care provider may occasionally refer you to a specialist for treatment. The referral does not guarantee that the specialist is a network provider. It is your responsibility 9

to make sure that any provider from whom you obtain care is a network provider. Traditional Choice Plan If you are in the Traditional Choice Plan, you may use a health care provider or facility of your choice. To locate a heath care provider or facility in your area, you may want to consult the telephone book or other community directories on-line or obtain advice from your friends and co-workers. Once you obtain a primary care provider, they can help you find specialist in your area for other treatment you may require. Overseas participants may also use Military Treatment Facilities in some locations. You should consult your local Military Treatment Facility to determine if they can provide your health care. Often, they can refer you to a local health care provider who speaks English and specializes in treating Americans. Dental Plan Including the Stand Alone Dental Plan If you are in the Dental Plan, you have the option of using either network or non-network dentists. To locate a network dentist, use the Aetna DocFind link located at www.nafbenefits.com - Benefit Programs Health Insurance. Once in Aetna DocFind, you should search for a dentist in your area. If you are unable to locate a network dentist within a reasonable driving distance, you may want to consult the telephone book or other community on-line directories or obtain advice from your friends and co-workers. Participating Pharmacies You must use a participating pharmacy in order to receive reimbursement for your prescription medications. Aetna has an extensive network of participating pharmacies from which to choose. You can find a complete list in Aetna DocFind. Overseas participants may obtain their prescription medications from any pharmacy. However, if you are located in the United States or Puerto Rico, and you have your prescriptions filled at a nonparticipating pharmacy, your prescription costs will not be reimbursed. Participants who are taking maintenance medications should obtain their prescriptions from the Mail-Order service, which substantially reduces your co-pays. Please see the Mail-Order prescription Drug Section for more information.) Note: HMO participants need to obtain services from their designated HMO providers. 10

OBTAIN AETNA HEALTH CARE WHILE TRAVELING Open Choice Plan Participants If you are on vacation or business and you need non-emergency health care, you should call the Toll Free Aetna Member Services telephone number, 1-800-367-6276, to obtain information about the availability of network services in that area. If you are in an accident and/or are unable to contact Aetna Member Services due to your condition, you will be reimbursed in accordance with the Summary of Benefits and the SPD for the Plan. If you are traveling overseas, your covered expenses will be reimbursed at the preferred level. If your dependent child is away at school or living with another parent, you should contact Aetna member Services for assistance in determining the availability of a network in your child s area. If no network is available, claims for your child s health care will be settled at the Traditional Choice benefit level. Traditional Choice Plan Participants If you are traveling away from home and need medical care, you will receive benefits for covered services just as if you were at home. If you have a medical emergency, you should get the care you need and notify Aetna member services within 48 hour to certify the admission. Use of emergency rooms for non-emergency care will result in a substantially reduced benefit. (Note: This also applies to OCONUS participants who are traveling in the states.) If your dependent child is away at school or living with another parent, benefits are paid as if your child lived with you. Note: HMO participants should check with their respective HMO to determine what services are available outside the United States before traveling. MAIL ORDER PRESCRIPTION DRUG SERVICE Aetna provides a mail order prescription drug serviced called Aetna RX Home Delivery for participants who are on maintenance medications and prefer to obtain up to a 90 day supply of their prescriptions, Using the Mail Order Drug Service is convenient because you don t have to make monthly trips to the local pharmacy to refill your prescriptions. Additionally, it will substantially reduce your pharmacy co-pays and the total cost of your prescriptions. To have your prescriptions filled be Aetna RX Home Delivery, 11

just complete the Registration form and send your prescription and a check for your co-pay in the pharmacy mailer included in your welcome kit. Additional mailers will be provided with your medications. Future refills can be requested online at www.aetnarxhomedelivery.com or by calling 1-866- 612-3862. Note: HMO participants need to obtain prescription drug service information from their respective HMO. FILING AETNA CLAIMS FOR SERVICES If you are in the Open Choice Plan and obtain health care services from a network provider or health care facility, your claims will be submitted by your provider. You must pay only the co-pay, if any, when you receive treatment. Once your claim has been settled, you will receive an Explanation of Benefits (EOB) that provides the details for your claim settlement. You should review the EOB carefully. Because of deductibles and co-insurance for some services, you may be required to pay your health care provider a portion of the cost. Your provider will bill you accordingly. Your provider may not, however, bill you for the costs of services in excess of the allowable, which has been negotiated between Aetna and the provider. If you are in the Open Choice Plan and obtain health care services from out of network providers or health care facilities, it is unlikely your provider will submit the claim for you. You will likely be required to pay the provider and then file a claim for reimbursement at the out-of-network benefit level. Claim forms are available and can be printed from the Benefit Forms Section of the NAF Benefits website, www.nafbenefits.com. If you are in the Traditional Choice Plan and obtain health care services you will normally be required to pay your provider, and then submit your claim for reimbursement. Many overseas Military Treatment Facilities will invoice you and provide up to 90 days to pay for services received. This will provide you with sufficient time to submit your claim and receive reimbursement before the bill is due. Claim forms are available and can be printed from the Benefit Forms Section of the NAF Benefits website, www.nafbenefits.com. Claims are normally processed by Aetna within 30 days of receipt, unless additional documentation of the treatment or translation of foreign claims is required. (Note: Claims submitted in foreign currency will be converted to and paid in US Dollars based on the OANDA exchange rate in effect on the date of service. Funds cannot be wire transferred to foreign hospitals or banks). 12

NOTE: Claims for services out of network are subject to reasonable and customary charges limits. That is, the allowable cost of the service must be in line with the average cost of those services in the area. If you are dissatisfied with the way your claim was settled, you may appeal the claims settlement. The appeals process can be found in the appeals section of the SPD. AETNA MEMBER SERVICES Participants in the DoD Health Benefit Plan may call Aetna Member Services for assistance and information from 8 a.m. to 6 p.m. CST, Monday through Friday or 24 hours a day for Aetna s Voice Advantage automated information service. The following information and assistance are provided by Aetna Member Services. Information about network providers and health care facilities For answers to general health questions For information about benefits under the Plan To pre-certify hospital care, if required To find out if there is an Open Choice network where your child lives with another parent or is away at school To check the status of a claim Request member ID cards AETNA NAVIGATOR Aetna Navigator is an online service to help you manage your health care. It s easy to use, secure and private. When you log on, there s a general site and a registered site. The general site provides useful information and links to health care information. The registered site takes you into your personal health care information. To access your personal information, you must complete a simple registration process and select a password. You then have access to: Your Plan information The members of your family covered under the Plan Claims processing status Explanation of Benefits for processed claims A temporary Member ID card until your card is received Information concerning your personal health care Aetna Navigator is a quick and easy way to get the answers you need about your Plan participation and your health care. 13

Note: HMO participants will need to coordinate services/claims/id card requests with their respective HMO customer service representatives/contacts located on the back of their member ID cards or by using the contact information located on the HMO website www.nafbenefits.com. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT The Health Insurance Portability and Accountability Act (HIPAA) of 1996 requires that employers provide a means for employees to elect or increase their health insurance coverage when they lose health insurance coverage or experience certain life events. If an employee has coverage from another employer or is covered by their spouse s health insurance with their employer and that insurance is subsequently lost, the employee, if otherwise eligible, may enroll in the DoD Health Benefit Plan. The enrollment must be requested within 31 days of the loss of the previous coverage. A HIPAA Certificate from the cancelled health insurance company must be presented to document eligibility. If an employee has elected single coverage and subsequently marries or obtains a dependent child by birth or adoption, the employee may increase their coverage from single to family. The change in coverage must be requested within 31 days of the event. Employees whose coverage is terminated for any reason will cease to be eligible under the Plan. They will receive a HIPAA Certificate from Aetna (for the DOD HBP) or from their HMO to document their loss of coverage. SPECIAL ENROLLMENT PROVISIONS Employees whose hours are reduced under a business based action due to troop deployments may drop their enrollment. Once their hours are again increased, they may reenroll in the DOD HBP provided they are otherwise eligible and request enrollment within 31 days. Employees who have family coverage but obtain an additional dependent through birth or adoption have 31 days to add the new dependent to their coverage. The DOD HBP honors Qualified Medical Child Support Orders (QMSCO). If an enrolled employee is ordered by a court or administrative order to provide health insurance for a child under a QMSCO, the employee must increase to family coverage and enroll the child. If the employee fails to 14

enroll the child as required by the order, the employer will enroll the child and the employee must pay the required premium for family coverage. USERRA The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects employees called to active duty from loss of benefits. If you are called to active duty you many continue your enrollment in the Health Benefit Plan for up to 24 months at no cost. You will not be required to repay the missed premiums to your employer upon your return to active employment. If you are participating in the Health Benefit Plan upon being called to active duty and you choose to cancel your enrollment due to Tricare coverage, you may enroll in the Health Benefit Plan within 31 days of the termination of your Tricare coverage. TEMPORARY CONTINUATION OF COVERAGE If you have participated in the Health Benefit Plan for 90 days prior to termination of your employment, you are eligible to continue y our coverage under the Temporary Continuation of coverage (TCC) Program for up to 18 months. All TCC participants pay the full premium for the coverage, plus a 2 percent administrative fee. Retirees who are ineligible for the Post Retirement Medical Benefit may continue their coverage for 18 months under TCC. Dependents who lose their coverage because the sponsoring employee or retiree loses coverage, or who become otherwise ineligible to participate due to age, loss of student status, fulltime employment, etc., are eligible to continue their coverage for 18 months under TCC. Totally disabled employees are eligible for up to 36 months of TCC from the date their Health Benefit Plan coverage ends. TCC coverage ends prior to 36 months if the participant ceases to be totally disabled or if they become eligible for Medicare of other health coverage. The following conditions apply: If the disabled employee has less than 5 years participation in the Health Benefit Plan, they must pay the full cost of the premium for TCC plus a 2% admin fee. If the disable employee has 5 or more years of participation in the Health Benefit Plan, they will be covered under TCC for 12 months at no costs 15

and for an additional 24 months at the full premium rate plus a 2 percent administrative fee. This provision does not apply to PRM eligible disabled employees. Please see the section on Post Retirement Medical Benefits. Surviving spouses may also be eligible for TCC. Please see the section on Survivor Benefits.) NOTE: The TCC Program is administered by Aetna, who will process enrollments of eligible participants and invoice the participant for the required premiums. Servicing HROs will provide the TCC form to terminating/non-prm eligible employees. Employees have 60 days after termination of their coverage to enroll in TCC. Dental Plan coverage is not included in the TCC Program. HMOs do not have TCC programs. Therefore, the employee should be offered the Aetna TCC option. CONVERSION OF COVERAGE Employees, retirees and dependents whose Health Benefit Plan coverage ceases may convert their coverage without a medical exam to a personal policy offered by Aetna. The personal policy coverage will take effect on the day following the termination of Health Benefit Plan coverage or the TCC period, if applicable. All HMOs also offer this conversion privilege. For information on conversion, please consult the SPD for your Health Benefit Plan. POST RETIREMENT MEDICAL (PRM BENEFITS) Employees may continue to participate in the Health Benefit Plan after retirement if they meet the following eligibility criteria. Participant premiums will be subsidized on a 30/70 employee/employer share split basis. The eligibility requirements for post retirement Dental Plan participation are the same as for the PRM benefit. Be enrolled in the Health Benefit Plan (either DOD HBP or HMO) on the day preceding retirement and receiving an immediate annuity Have 15 years of cumulative participation in any combination of NAF health Benefit Plans and/or the Federal Employee Health Benefit Plan (FEHBP). Participation does not have to be continuous and is not affected by breaks in service. The following cannot be used to attain eligibility for the PRM benefit: 16

o Participation in a Health Benefit Plan as a dependent family member o Participation in Tricare or non-government Plans The requirement for 15 years cumulative participation is waived: o If the employee had five continuous years of participation in the FEHBP on the day prior to an involuntary move from a DoD APF position to a DoD NAF position without a break in service of more than three days. o If the employee had five years of continuous participation in the FEHBP on the day prior to moving from a DoD APF position to a DoD NAF position under the Uniform Funding and Management (UFM) Program. The move must have occurred after December 2, 2002 without a break in service of more than three days. Documentation is required. Employees who were participating in the Army NAF Health Benefit Plan on December 31, 1999 and subsequently enrolled in the DOD HBP effective January 1, 2000 are grandfathered under the previous Army Health Benefit Plan PRM eligibility rules which required participation for the five years immediately preceding retirement on an immediate annuity to receive the subsidized PRM benefit and or fifteen years cumulative participation including the five years immediately preceding retirement on an immediate annuity to receive free medical from age 62 to 65. The retirement must occur when the employee is age 62 to 65. NOTE: Deferred annuitants are not eligible for the PRM benefit. Retirees who do not elect PRM participation at retirement or who cancel their participation may not rejoin the Health Benefit Plan at a later date. EFFECTS OF MEDICARE Active employees who reach age 65 and become eligible for Medicare must enroll in Medicare Part A. Once retired, they must also enroll in Medicare Part B. Their Health Benefit Plan benefits will be coordinated with Medicare. As an active employee, the Health Benefit Plan will pay as the primary insurer and Medicare will pay as secondary insurer. Retirees who become eligible for Medicare at age 65 (or earlier if disabled) must enroll in Medicare Part B. Medicare benefits will be coordinated with the benefits of the Health Benefit Plan. Medicare will pay as the primary insurer and the Health Benefit Plan will pay as the secondary insurer. 17

For more information on the effect of Medicare or coverage from another insurer, please consult the SPD or Medicare.gov. MEDICARE PART D Medicare eligible retirees may enroll in Medicare part D, the prescription drug program under Medicare. However, Medicare Part D benefits are not coordinated with the Pharmacy benefit under the Health Benefit Plan. Because the Prescription Drug benefit under the Health Benefit Plan is more generous than the benefit under Medicare Part D, retirees are cautioned that enrollment in Medicare Part D will require an additional monthly premium to Medicare for a benefit that is already included under the Health Benefit Plan. COORDINATION OF BENEFITS Employees often mistakenly believe that enrolling in multiple health insurance Plans will result in 100 percent coverage of their health care. When an employee or retiree has coverage from two insurers, benefits will be coordinated between the two Plans. Multiple health insurances will normally not be in your best interest, because the insurers will not both pay for the same services and the benefits paid will not exceed the maximum reimbursement allowed by the more generous insurer. In view of the high cost of health insurance, it is almost never advantageous to enroll in multiple Plans. For active employees, benefits will be coordinated to ensure that the DOD HBP reimbursement takes into account payments made by the other insurer. Under this approach, active employees will not receive a total benefit greater than that provided under the DOD HBP. For Medicare eligible retirees, benefits will be coordinated to ensure that the DOD HBP reimbursement takes into account payments made by Medicare as the primary insurer. The DOD HBP does not act as a Medicare Supplement, and it does not pay the difference between the Medicare allowable and what Medicare reimburses. For additional information on coordination of benefits, please consult the SPD. SURVIVOR BENEFITS Surviving dependents of deceased employees may continue participation in the Health Benefit Plan under the following circumstances provided they were covered dependents under the Plan for at least 90 days and were 18

covered dependents on the day of the employee s death. The first four months of continued medical coverage will be paid for by the employer, after that these are the TCC and retiree medical rules: Surviving dependents of employees who are not PRM eligible will receive four months of employer paid TCC coverage and an additional 32 month of TCC coverage at their expense. The surviving dependent must pay the full premium plus a 2 percent administrative fee for the additional 32 months of TCC. Surviving dependents of employees who were PRM eligible at the time of death may continue Health Benefit Plan coverage at the PRM employee/employer premium share split (30/70). Coverage for surviving spouses will continue for life or until cancelled by the surviving spouse. Coverage for non-spouse benefits may continue until the dependent becomes ineligible due to age or fulltime employment. A WORD ABOUT PRIVACY Your privacy is protected under the HIPAA Privacy Act, which prevents disclosure of information concerning your health, medical care, or even your participation in the Health Benefit Plan. Under this legislation, all Human Resource and Benefits personnel receive training on protecting your privacy and implementing appropriate administrative, technical and physical safeguards for protected health information (PHI). Your PHI may not be released to anyone without your written consent. Should you or your designated representative call your Human Resources Office or the Army NAF Employee Benefits Office for assistance on Health Benefit Plan matters, you may be required to execute a release form prior to obtaining the assistance you desire. Please understand that this is a statutory requirement intended to protect your privacy. WHERE TO GET INFORMATION AND ASSISTANCE Aetna Toll free numbers Aetna Member Services 1-800-367-6276 From overseas call AT&T direct Access Code and then 800-367-6276 HMO Points of Contact are listed on the NAF Benefits Website, 19

www.nafbenefits.com Department of the Army Attn: NAF Employee Benefits - Medical 2455 Reynolds Road Joint Base San Antonio Fort Sam Houston, TX 78234 Toll Free: 1-855-872-7704 or 210-466-1628 or DSN 450-1628 NAF Benefits Website, www.nafbenefits.com Email at usarmy.jbsa.imcom-hq.mbx.naf-benefits-office-medical-team@mail.mil 20